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Saturday, March 12, 2016

Data vs. Emotion: How to Avoid Bad Marketing Decisions

 
In the past, when you published an update on your Facebook business page, it would reach a large percentage of all of your fans, but those days are long gone.  Now businesses are forced to pay for that same distribution that was once free.
 
In response to Facebook's changes, Eat24 is threatening to jump ship and close down their Facebook fan page at 11:59 PM tonight.  What do you think, is that a smart move?  When things change, do you think it's best to pack your bags and move elsewhere?
 
How you answer that question, reveals a lot about you and how you approach business and marketing.  In this article, I'll explain why change is actually a good thing for your business, and how to avoid making a big mistake like Eat24 is on schedule to make tonight.

 
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Change Equals Opportunity

Here's the reality with digital marketing: things change fast!
 
Google constantly updates their search algorithm and the layout of their search results.  Ad networks, tactics, and formats are constantly evolving.  New devices like smartphones and wearables are now forcing change in nearly every digital marketing tactic.  And a hot new social media platform is bound to pop up any minute now.
 
Change is often scary, so most people avoid it at all costs.  But in business and marketing, change equals opportunity!  Every time Google shakes up the search results, you have an opportunity to overtake your competitors.  If you're one of the first businesses to try a new ad format like YouTube's TrueView ads, then you'll reap the benefits of low cost, targeted traffic before your competitors.  Or, in the case of Eat24, if you realize Facebook is now a highly targeted ad platform, and you change your tactics accordingly, then you'll think twice about deactivating your account.
 
It's all about perspective.  Sure, it was a heck of lot better to get free exposure via Facebook than it is to pay for it now.  But doesn't that also mean it's now harder for other businesses to reach your prospects and customers?  When Facebook changed their platform, they gave some businesses a real competitive advantage.
 

Use Data (Not Emotion) to Guide Your Marketing Decisions [Tweet this]

I'll admit, I have no idea if Eat24 is getting any return on their Facebook marketing.  I didn't even know who they were before I stumbled on their shared article.  So I guess their PR stunt worked to some extent.
 
But based on their article, they are making their decision to leave for all the wrong reasons.  I hear similar complaints all the time from business owners regarding Google algorithm updates, Yelp hiding reviews, and rising AdWords costs.  It's OK to get frustrated, but don't let emotion guide a big marketing decision.  Instead, let the data do the talking.
 
Google Analytics allows you to track all of your marketing channels so you can evaluate the return on investment from your campaigns.   Once you're tracking your campaigns, then you can make an informed decision.  For example, Eat24 should be able to see how much traffic is coming from Facebook, and more importantly how much is converting to sales.  Based on that data, it'll be clear if they can afford to invest in Facebook ads to continue that channel.
 
If it's profitable, then it doesn't make sense to shut it off.  As I'm sure you've heard, and as my wife repeatedly reminds me, "Don't throw the baby out with the bathwater." :)
 

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